KINGMAN - The Cerbat Water Company, which services several neighborhoods to the city's north, has formally pulled its application for an emergency rate increase.
On March 1, the company filed a request to withdraw its application, nearly four months after it first asked for the emergency increase. No official reason for the withdrawal was given, though the Arizona Corporation Commission's staff had earlier recommended the increase be denied due to a number of outstanding financial and regulatory concerns.
An ACC report filed Jan. 5 found that Cerbat's financial operations are inextricably tied to the Claude B. Neal Family Trust, and the two entities appear to share a great deal of financial overlap. Even the company's well is actually owned by the trust, not the company itself.
Cerbat has been court-ordered to file an application for a permanent rate increase no later than April 30, lest it suffer punitive measures such as being placed under the temporary control of an interim manager. The permanent rate filing must also include documentation proving the company is in compliance with the Arizona Department of Environmental Quality and the Arizona Department of Water Resources, and the company must also begin maintaining a separate bank account for all transactions that occur under its name.
The emergency rate request stems from a situation last October when the diesel motor on the company's lone well broke down, causing an immediate water shortage that lasted several days before the city of Kingman opted to step in and provide 1 million gallons to Cerbat's roughly 250 customers. The rate increase called for about $120,000 for repairs, new equipment and leasing fees, which would have translated to a one-time $30 charge to each customer, plus an additional $20 per month in base water fees.
The company had been set to defend its emergency application before the ACC on Jan. 20, but the hearing was pushed back after none of the company officials present could prove they had been formally established as a legal representative for the company. A subsequent hearing set for March 4 was cancelled following Cerbat's request withdrawal.
Calls for comment to company manager Mike Neal went unreturned as of press time.
Reader Comments
Posted: Tuesday, March 16, 2010
Article comment by:
John Salem
At the construction site for the revamp of the Lee Williams High School a 12" main line was broken resulting in the main 90 thrust block being destroyed. After the main line repair, pressure had to be relieved while the new concrete thrust block cured for 72 hrs. The alternative would be no water service to downtown water customers. Contact my office at 753-8101 or Rob Owen our Public Works director for more information if desired. John Salem.
Posted: Tuesday, March 16, 2010
Article comment by:
kingman wisdom
Sounds like the set up for a great excuse to hike water bills downtown...
God this place is like living in the twilight zone..Im savin every penny to get out of here. I suggest everyone else does the same.
Posted: Monday, March 15, 2010
Article comment by:
JUST ME
ON AN UNRELATED TOPIC OF WASTED WATER. Why is the city of kingman running approximately 5 gallons of water per second, 18,000 per hour, into the sewer at the corner of Bealle st and Grandview. the FIRE HYDRANT has been running there, with a spout into the storm drain, since sometime friday, today is monday and still going. for 3 days that is nearly 2 MILLION GALLONS OF WATER DOWN THE DRAIN. ????????????
